'US Fed hike may increase EM capital outflows'

Priya Misra of BofA-ML says that the US growth rate is likely to increase to 3.5% in Q2 from 1.5% in Q1, and hence, the US Fed will most likely hike rates in September, followed by another round of increase in December 2015. This, she says, will increase capital outflows from emerging markets, particularly if global growth doesn't pick up till then.